The 1984-85 agricultural census estimated that 8.7 million people live in the rural areas and that 65 percent of the active population within these areas lives at the subsistence level. The census also noted that average farm size was 1.2 hectares, although irrigated rice plots in the central highlands were often 0.5 hectares. Only 5.2 percent (3 million hectares) of the country's total land area of 58.2 million hectares is under cultivation; of this hectarage, less than 2 million hectares are permanently cultivated. Agriculture is critical to Madagascar's economy in that it provides nearly 80 percent of exports, constituting 33 percent of GDP in 1993, and in 1992 employed almost 80 percent of the labor force. Moreover, 50.7 percent (300,000 square kilometers) of the total landmass of 592,000 square kilometers supports livestock rearing, while 16 percent (484,000 hectares) of land under cultivation is irrigated.
The government significantly reorganized the agricultural sector of the economy beginning in 1972. Shortly after Ratsiraka assumed power, the government announced that holdings in excess of 500 hectares would be turned over to landless families, and in 1975 it reported that 500,000 hectares of land had been processed under the program. The long-range strategy of the Ratsiraka regime was to create collective forms of farm management, but not necessarily of ownership. By the year 2000, some 72 percent of agricultural output was to come from farm cooperatives, 17 percent from state farms, and only 10 percent from privately managed farms. Toward this end, the Ministry of Agricultural Production coordinated with more than seventy parastatal agencies in the areas of land development, agricultural extension, research, and marketing activities. However, these socialistinspired rural development policies, which led to a severe decline in per capita agricultural output during the 1970s, were at the center of the liberalization policies of the 1980s and the structural adjustment demands of the IMF and the World Bank.
The evolution of rice production--the main staple food and the dominant crop--offers insight into some of the problems associated with agricultural production that were compounded by the Ratsiraka years. Rice production grew by less than 1 percent per year during the 1970-79 period, despite the expansion of the cultivated paddy area by more than 3 percent per year. Moreover, the share of rice available for marketing in the rapidly growing urban areas declined from 16 or 17 percent of the total crop in the early 1970s to about 11 or 12 percent during the latter part of the decade. As a result, Madagascar became a net importer of rice beginning in 1972, and by 1982 was importing nearly 200,000 tons per year--about 10 percent of the total domestic crop and about equal to the demand from urban customers.
The inefficient system of agricultural supply and marketing, which since 1972 increasingly had been placed under direct state control, was a major factor inhibiting more efficient and expanded rice production. From 1973 to 1977, one major parastatal agency, the Association for the National Interest in Agricultural Products (Société d'Intérêt National des Produits Agricoles-- SINPA), had a monopoly in collecting, importing, processing, and distributing a number of commodities, most notably rice. Corruption leading to shortages of rice in a number of areas caused a scandal in 1977, and the government was forced to take over direct responsibility for rice marketing. In 1982 SINPA maintained a large share in the distribution system for agricultural commodities; it subcontracted many smaller parastatal agencies to handle distribution in certain areas. The decreasing commercialization of rice and other commodities continued, however, suggesting that transportation bottlenecks and producer prices were undermining official distribution channels.
To promote domestic production and reduce foreign imports of rice, the Ratsiraka regime enacted a series of structural adjustment reforms during the 1980s. These included the removal of government subsidies on the consumer purchase price of rice in 1984 and the disbanding of the state marketing monopoly controlled by SINPA in 1985. Rice growers responded by moderately expanding production by 9.3 percent during the latter half of the 1980s from 2.18 million tons in 1985 to 2.38 million tons in 1989, and rice imports declined dramatically by 70 percent between 1985 and 1989. However, the Ratsiraka regime failed to restore self-sufficiency in rice production (estimated at between 2.8 million to 3.0 million tons), and rice imports rose again in 1990. In 1992 rice production occupied about two-thirds of the cultivated area and produced 40 percent of total agricultural income, including fishing, which was next with 19 percent, livestock raising, and forestry.
In February 1994, Cyclone Geralda hit Madagascar just as the rice harvesting was to start and had a serious impact on the self-sufficiency goal. In addition, the southern tip of Madagascar suffered from severe drought in late 1993, resulting in emergency assistance to 1 million people from the United Nations (UN) World Food Program (WFP). This WFP aid was later transformed into a food-for-work program to encourage development.
Other food crops have witnessed small increases in production from 1985 to 1992. Cassava, the second major food crop in terms of area planted (almost everywhere on the island) and probably in quantity consumed, increased in production from 2.14 million tons in 1985 to 2.32 million tons in 1992. During this same period, corn production increased from 140,000 tons to 165,000 tons, sweet potato production increased from 450,000 tons to 487,000 tons, and bananas dropped slightly from 255,000 tons to 220,000 tons.
Several export crops are also important to Madagascar's economy. Coffee prices witnessed a boom during the 1980s, making coffee the leading export crop of the decade; in 1986 coffee earned a record profit of US$151 million. Prices within the coffee market gradually declined during the remainder of the 1980s, and earnings reached a low of US$28 million in 1991 although they rebounded to US$58 million in 1992. Cotton traditionally has been the second major export crop, but most output during the early 1980s was absorbed by the local textile industry. Although cotton output rose from 27,000 tons in 1987 to 46,000 tons in 1988, once again raising the possibility of significant export earnings, the combination of drought and a faltering agricultural extension service in the southwest contributed to a gradual decline in output to only 20,000 tons in 1992.
Two other export crops--cloves and vanilla--have also declined in importance from the 1980s to the 1990s. Indonesia, the primary importer of Malagasy cloves, temporarily halted purchases in 1983 as a result of sufficient domestic production, and left Madagascar with a huge surplus. A collapse in international prices for cloves in 1987, compounded by uncertain future markets and the normal cyclical nature of the crop, has led to a gradual decline in production from a high of 14,600 tons in 1991 to 7,500 tons in 1993. Similarly, the still stateregulated vanilla industry (state-regulated prices for coffee and cloves were abolished in 1988-89) found itself under considerable financial pressure after 1987 because Indonesia reentered the international market as a major producer and synthetic competitors emerged in the two major markets of the United States and France. As a result, vanilla production has declined from a high of 1,500 tons in 1988 and 1989 to only 700 tons in 1993.
The fisheries sector, especially the export of shrimp, is the most rapidly growing area of the agricultural economy. This production is making up for lost revenues and potential structural decline within the ailing coffee, vanilla, and clove trade. Since 1988 total fish production has expanded nearly 23 percent from 92,966 tons to 114,370 tons in 1993. The export of shrimp constituted an extremely important portion of this production, providing export earnings of US$48 million in 1993. It is estimated by Aqualma, the major multinational corporation in the shrimp industry, that expansion into roughly 35,000 hectares of swampland on the country's west coast may allow for the expansion of production from the current 6,500 tons and US$40 million in revenues to nearly 75,000 tons and US$400 million in revenues by the end of the 1990s. The prospects are also good for promoting greater levels of fish cultivation in the rice paddies, and exports of other fish products, most notably crab, tuna, and lobster, have been rising.
Livestock production is limited in part because of traditional patterns of livestock ownership that have hampered commercialization. Beef exports in the early 1990s decreased because of poor government marketing practices, rundown slaughtering facilities, and inadequate veterinary services. Approximately 99 percent of cattle are zebu cattle. In 1990 the Food and Agriculture Organization of the UN estimated that Madagascar had 10.3 million cattle, 1.7 million sheep and goats, and some 21 million chickens.
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